Gold and Silver Prices Slide Lower Following US Jobs Report — Analyst Says Data Suggests ‘Market Bottom Is in Place’

Gold and Silver Prices Slide Lower Following US Jobs Report — Analyst Says Data Suggests "Market Bottom Is in Place"

On Friday, October 7, 2022, the precious metals gold and silver dropped in U.S. dollar value following the recent U.S. jobs report for September. The USD value of gold per troy ounce is awfully close to slipping below the $1,700 range, while the price of silver is teetering near the $20 threshold. Precious Metals Price Patterns Follow Friday’s Equity Market Rout and Crypto Carnage

Just before the weekend, Wall Street’s major indices tumbled as the latest U.S. jobs report for September is making investors believe the Federal Reserve will continue its aggressive rate hikes. The price of bitcoin (BTC) slid 3.4% against the U.S. dollar, and ethereum (ETH) dropped 3.2% during the past 24 hours. The entire crypto-economy hovering at around $979 billion on Friday, and it is down 2.4% at 2:30 p.m. (ET). In addition to the crypto economy, all four major precious metals — gold, silver, platinum, and palladium are down between 0.64% to 3.32%. Screenshot from Kitco’s precious metals price aggregator via the New York spot price on October 7, 2022, at at 2:30 p.m. (ET).

Kitco’s precious metals senior market analyst and columnist Jim Wyckoff detailed on Friday afternoon that the data stemming from the U.S. jobs report was “arguably the most important U.S. data point of the week.” Wyckoff noted that the official data was 263,000 jobs, “which was just below the expected rise of 275,000.” The news, Wyckoff reckons, may lead to the U.S. central bank keeping its aggressive stance going strong.

“The August report showed non-farm jobs rise of 315,000. The U.S. unemployment rate dropped to 3.5% in September, which was lower than expected,” Wyckoff wrote on Friday. “The August jobless rate was 3.7%. Average hourly earnings were up 4.98% from last year at the same time. The marketplace reckons the jobs report did nothing to dissuade the Federal Reserve from its aggressively tight monetary policy,” the senior market analyst added. Gold/USD chart on October 7, 2022.

Similar to equity and cryptocurrency markets, gold markets felt the pressure of the latest U.S. data point. At the time of writing, the nominal U.S. dollar value of a single troy ounce of .999 fine gold is 1,701.40 per unit. Some exchanges have seen gold drop below the $1,700 threshold on Friday as well at $1,699 per ounce. Silver/USD chart on October 7, 2022.

Silver is also nearing dropping below the $20 threshold on Friday, as it’s 20.35 nominal U.S. dollar per ounce of silver as the weekend approaches. Gold’s USD value per ounce is down 0.64% and silver is down 1.87% during the last 24 hours. Platinum shed 0.33% and palladium’s price slid by 3.32% on Friday afternoon (ET).

“Technically, the December gold futures bears have the overall near-term technical advantage. However, recent gains begin to suggest a market bottom is in place,” Wyckoff explained. Silver futures, in terms of bulls, also show an advantage the precious metals market analyst said.

“September silver futures bulls have [a] slight overall near-term technical advantage. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $22.00. The next downside price objective for the bears is closing prices below solid support at $19.00,” Wyckoff’s report details.

The analyst’s statements concerning the formation of a market bottom are similar to Mike McGlone’s recent analysis. The ​​Bloomberg Intelligence commodity analyst explained in a recent commodities report for October that he saw the price of gold forming in a similar fashion to the way it did in 1999.

In addition to gold resuming its rally in the near future, McGlone added in his October crypto report that when the “ebbing economic tide turns,” McGlone and his team see “propensity resuming” for bitcoin (BTC) and ethereum (ETH) and he believes they will “outperform most major assets.” Tags in this story commodities, economics, Economy, Fed, Federal Reserve, gold, Gold Ounce, Greenback, inflation, Jim Wyckoff, Kitco, market updates, Markets, Mike McGlone, Ounce of Gold, Ounce of Silver, palladium, platinum, PM Markets, Precious Metals, rate hikes, senior market analyst, silver, Silver Ounce, U.S. dollar, US Jobs Report, USD, values

What do you think about gold and silver’s recent decline during the last 24 hours and following the latest U.S. jobs report? Let us know what you think about this subject in the comments section below. Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today. Biggest Movers: DOGE, SHIB Slide Following Better-Than-Expected Payrolls Report  MARKET UPDATES | 8 hours ago Bitcoin, Ethereum Technical Analysis: BTC Drops Below $20,000 Ahead of US Nonfarm Payrolls Report MARKET UPDATES | 11 hours ago

Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleSleuth Discovers Satoshi’s Long-Lost Bitcoin Version 0.1 Codebase, Raw Code Contains Bitcoin Inventor’s Never-Before-Seen Personal Notations Next articleGoogle to Require Government Authorization to Provide Advertising Services for Financial Products in Spain Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItRipple CEO: SEC Lawsuit Over XRP "Has Gone Exceedingly Well"

The CEO of Ripple Labs says that the lawsuit brought by the U.S. Securities and Exchange Commission (SEC) against him and his company over XRP "has gone exceedingly well." He stressed: "This case is important, not just for Ripple, it’s ... read more.Fidelity Investments Launches Crypto, Metaverse ETFs — Says "We Continue to See Demand" Survey: Adoption in Argentina Grows, With 12 out of 100 Adults Having Invested in Crypto Iran to Increase Penalties for Unauthorized Cryptocurrency Mining Terra"s Algorithmic Dollar-Pegged Crypto UST Is Now the Third-Largest Stablecoin